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Revolving Funds

Revolving Funds. By Tanya Harris, CPA Principal Accountant. What is a Revolving Fund?. An authorized amount of cash in the form of currency, a bank checking account or both. Governed By:. Standard Practice Manual # III E-1-2.1 (old) (Policy 708 - new draft policy)

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Revolving Funds

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  1. Revolving Funds By Tanya Harris, CPA Principal Accountant

  2. What is a Revolving Fund? An authorized amount of cash in the form of currency, a bank checking account or both

  3. Governed By: • Standard Practice Manual # III E-1-2.1 (old) (Policy 708 - new draft policy) • Board of Supervisors Resolution # 74-156 • California Government Code Sections 29320 to 29334

  4. Revolving Fund Request Order & Change Form • SPM Form AR-1 - Used for the following purposes: - Establish a new Revolving Fund - Increase/Decrease the amount - Discontinue the Revolving fund - Change Custodians • Department Head signature REQUIRED • Submit original signatures to the Auditor-Controller’s Office (Heydee Koury) for approval

  5. Revolving Fund Request Order & Change Form (cont’) • One custodian per Revolving Fund - Custodian is the person who is responsible for the amount of money issued. Custodians must be bonded up to amount of the Revolving Fund. • Any change in amount or custodian requires department head signature

  6. Revolving Fund Request Order & Change Form (cont’) • On Form AR-1, if you check Yes on Question #2 that there will be a checking account, you will also be required to complete SPM Form AP-5 “Request to Establish a Checking Account” • The checking account should have at least two signors

  7. Monthly Requirements • Monthly, at a minimum, the custodian should submit a voucher supported by proper evidence of authorized expenditures, for the amount to be reimbursed back into the revolving fund

  8. Monthly Requirements (cont’) • Each disbursement from the Revolving Fund must be substantiated with a properly filled out, prenumbered, paid out disbursement receipt. • Disbursement Receipts must be in duplicate with the original copy attached to the voucher requesting replenishment

  9. Year-End Requirements • When checking accounts are held outside the County Treasury a Schedule P, reconciliation and a signature card must be completed at the end of the each fiscal year • More information will follow in the Year-End packet which will be presented in May

  10. Audit of Revolving Funds • Internal Audits is currently conducting an audit on Revolving Funds • The General Accounting Division of the ACO will be reconciling and reviewing all Revolving Funds and asking departments to • Update custodian information • Checking account information • Where the money is kept

  11. Cash Overage and Shortage Related to Revolving Funds • Daily Report SPM Form AR-3 • Monthly Report SPM Form AR-4 (These are the combination of Daily Reports AR-3) – This is due two weeks after the close of the month and MUST be signed by a Department Head • Quarterly, departments will be reimbursed for shortages. A Form 11 is prepared and taken to the board within 60 days from the end of the quarter

  12. Cash Overage and Shortage Related to Revolving Funds (cont’) • Overages will be handled as follows: • All overages should be returned to the fund that initially established the Revolving Fund • The Treasurer Cash Receipt (TCR) number must be notated on the SPM Form AR-4

  13. Cash Overage and Shortage Related to Revolving Funds (cont’) • Shortages will be handled as follows: • Issued from the General Fund • ACO will issue a warrant to reimburse the departments • Issued from other Funds • Departments will reimburse themselves according the County voucher process guidelines

  14. Discontinuance of a Revolving Fund • The Custodian must request and obtain reimbursement for all unreimbursed expenditures • A check or cash must be returned to the Treasurer • The Treasurer will sign the AR-1 form approving the discontinuance of the fund • The signed AR-1 form will then go to the Auditor-Controller to close out the account in the PeopleSoft, General Ledger Module

  15. Questions ? Any Questions Contact: Heydee Koury at 951-955-9461 or Susan Porte at 951-955-3850 or Tanya Harris at 951-955-8375

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